After opening the day in red, share market in India witnessed volatile trading activity throughout the day and ended the day deep in negative territory. Sectoral indices ended the day in red, with stocks in the energy sector and stocks in the PSU sector losing the most.
At the closing bell, the BSE Sensex stood lower by 792 points (down 2.3%) and the NSE Nifty closed down by 283 points (down 2.7%). The BSE mid-cap index ended the day down 2.7%, while the BSE small index ended the day up by 2%.
The decline came on the back of a sharp fall in NBFC stocks. DHFL skidded over 50% in intraday trade on fears of a liquidity crisis. For this sudden fall, Market experts blamed higher crude oil prices, weakness in the rupee and bearish global cues for the market blues. For immediate triggers, they blamed financial crises at IL&FS (Infrastructure Leasing & Financial Services) and the sharp slide in YES Bank’s shares after the lender’s MD and CEO Rana Kapoor was denied extension by the Reserve Bank of India.
The main reason behind share market drowning is higher crude oil prices because it is so necessary elements for Indian consumers. We hope that this problem could solve as soon as possible so that the Indian share market could function nicely in the world market.